Posco Future M's ESS supply contract canceled

Posco Future M, which produces and supplies anode and cathode materials in Korea, said it agreed with SolarEdge Technologies Korea to cancel a long-term contract to supply cathode materials for energy-storage systems after the buyer ended its ESS business.

The contract had been scheduled to run from Aug. 24, 2022, through the 23rd before it was canceled Aug. 8 last year.

The cancellation amount was 945 billion won ($678 million), while 107 billion won ($76.6 million) had been fulfilled under the agreement before it ended. Posco Future M's most recently reported revenue was 3.6999 trillion won ($2.66 billion).

Its energy-materials business reported 761.5 billion won ($547 million) in revenue in the first half of 2026, accounting for 53.0% of consolidated revenue.

Posco Future M said demand for LFP batteries for ESS is rising rapidly as renewable energy expands and power demand increases with the spread of AI data centers. The company plans to retool part of the production lines at its Pohang cathode-materials plant from ternary high-nickel products to LFP cathode materials, with mass production scheduled for the second half of 2026. CNP New Materials Technology, a joint venture, plans to build an LFP cathode-materials factory in phases, targeting production in 2027 and annual capacity of up to 50,000 tonnes.